Asian shares mostly dip after US stocks rally
TOKYO (AP) — Asian shares mostly declined Tuesday, despite a rally on Wall Street boosted by easing oil prices, as regional investors still weighed the impact from the recent joint U.S.-Japan currency intervention. Japan’s benchmark Nikkei 225 slipped 0.6%…
Asian shares experienced a predominantly downward trend on Tuesday, in contrast to the rally observed on Wall Street, which was driven by a reduction in oil prices. Despite this positive momentum, regional investors remained cautious due to the aftermath of a recent joint U.S.-Japan currency intervention. The Nikkei 225, a key benchmark in Japan, experienced a slight decline of 0.6%, settling at 63,369.85, while the U.S. dollar gained slight traction, reaching 157.63 yen from 157.18 yen.
The euro remained relatively stable, priced at $1.1511, showing little change from its previous value of $1.1514.
Analysts expressed uncertainty regarding the effectiveness of such an intervention, arguing that it did not tackle the underlying economic factors contributing to currency fluctuations, including inflation, interest rates, and the comparative strengths of the economies. A report by BMI, a division of Fitch Solutions, highlighted that a U.S.-led operation carries more weight in signaling than Japan acting alone, and while further action might instill caution among speculators, the impact would likely be limited by the size of the contribution.
Matthew Ryan, the head of market strategy at Ebury, a global financial services firm, observed that the implementation of the latest intervention might have some effect, as it appeared to indicate a genuine change in monetary policy rather than a mere short-term defensive measure. He emphasized that this development holds significant importance for the yen and has substantially enhanced confidence in the currency.
The performance of other Asian markets mirrored the broader trend. The South Korean Kospi index remained virtually unchanged, slipping by less than 0.1% to 6,254.76. Australia's S&P/ASX 200 index experienced a modest gain of 1.2%, reaching 9,128.60. Conversely, Hong Kong's Hang Seng index declined slightly by 0.5%, settling at 25,881.99, and the Shanghai Composite index experienced a minimal drop of 0.2%, ending at 3,802.61.
On the U.S. stock market, investors celebrated a rally on Monday following a decrease in oil prices, which helped alleviate concerns about potential inflation escalation. The S&P 500 index achieved a 1.5% gain and was only 0.1% below the record set earlier in the summer.
Written by urgent.news from Associated Press's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
